Bangladesh’s Bold Move to Revive Its Stock Market With State Sell-Offs
Bangladesh’s interim government is pushing ahead with plans to sell off shares in state-owned companies, aiming to boost the country’s stock market today by listing profitable local and multinational firms. Officials have already secured approval from key ministries—something previous attempts lacked.
Ten companies, including six multinational and four local firms, have been selected for divestment. The government holds around 40% stakes in the foreign-owned firms and nearly full ownership in the domestic ones. But despite progress, some remain sceptical about whether the plan will succeed this time.
The latest initiative began after a May 2025 meeting led by interim government chief adviser Professor Muhammad Yunus. His directives called for urgent action to revive the struggling stock market today. Unlike past efforts, the industries and power, energy, and mineral resources ministries have now given their approval.
Previous attempts to rejuvenate the stock market today saw only partial success. Some shares of fully state-owned and multinational companies were offloaded, but broader progress stalled. This time, officials want to move quickly—but they still need consent from the boards of the selected companies before proceeding. Finance adviser Salehuddin Ahmed claimed the current plan has advanced further than earlier tries. Yet not everyone shares his optimism. Abu Ahmed, chairman of the Investment Corporation of Bangladesh, warned that delays from ministries could still derail the process. Bangladesh’s stock exchanges currently list few major international firms. Most global corporations—from tech and automotive to pharmaceutical and consumer goods—operate in the country through unlisted subsidiaries or private entities. Factors like small market size, illiquidity, regulatory hurdles, and currency restrictions make local listings less appealing compared to larger markets such as the US, EU, India, or Hong Kong.
The government’s divestment plan now hinges on securing board approvals from the chosen companies. If successful, the sale of shares could inject new activity into Bangladesh’s stock market today. But past experience shows that bureaucratic delays and regulatory challenges may still slow—or even halt—the process.
